FAC Explorer

Finding 387858 (2023-003)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2023
Accepted
2024-03-28
Audit: 299892
Organization: County of Fresno (CA)
Auditor: Brown Armstrong Accountancy Corporation

AI Summary

  • Core Issue: The County improperly used $988,387 in SLFRF funds for premium pay to essential workers after the National Emergency ended on April 10, 2023.
  • Impacted Requirements: The County failed to comply with Treasury regulations regarding allowable activities for SLFRF funds.
  • Recommended Follow-Up: Management should review compliance requirements, consult experts, and attend relevant trainings to ensure proper categorization and reporting of expenditures.

Finding Text

Finding 2023-003 – Coronavirus State and Local Fiscal Recovery Funds – Activities Allowed or Unallowed Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No.: 21.027 Federal Agency: U.S. Department of the Treasury Passed Through: N/A – Direct Program Award Year: Fiscal Year 2022-2023 Compliance Requirement: Activities Allowed or Unallowed Questioned Costs: $988,387 Criteria As a condition to receiving Coronavirus State and Local Fiscal Recovery Funds (SLFRF) award payments from the U.S. Department of the Treasury (Treasury), the County agreed that the funds disbursed under this award may only be used in compliance with sections 602 and 603 of the Social Security Act (the Act), Treasury’s regulations implementing that section, and guidance issued by Treasury regarding the SLFRF. Under the Treasury’s guidance, recipients may use SLFRF payments to respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers. Accordingly, recipients may not use SLFRF funds to provide premium pay to essential workers for work performed after the end of the National Emergency on April 10, 2023. Condition During our testing of expenditures charged to the program, we noted the County provided bi-weekly payments of $150 to County employees who work in congregate settings; the payments began on December 26, 2022, and will continue through the end of June 2025. Per inquiry of staff, the total amount of congregate settings payments for work performed after April 10, 2023, totaled $988,387. Cause of Condition The County’s existing internal control system is not operating effectively to provide reasonable assurance that charges to the program are allowable. Repeat Finding No. Effect of Condition The County is not in compliance with the activities allowed or unallowed requirements related to the program. Recommendation Management should develop an understanding of the compliance requirements for SLFRF and COVID-19 related programs. This can be achieved through the following actions: • Reviewing the Single Audit Compliance Supplement and program-specific guidance documents issued by the awarding agencies. • Consulting with qualified professionals specializing in federal grant compliance. • Attending relevant trainings offered by the U.S. Department of the Treasury or the specific federal agencies managing the COVID-19 programs in which the County participates. Management Response and Corrective Action Plan At the time of approval, the Board Agenda Item for the Congregate Setting Payment (CSP) program did not clearly state under which expenditure category this expense would fall under. Upon further research and as identified in the County’s Recovery Plan Annual Report, the CSP program should have been classified under the expenditure category for Public Health and Negative Economic Impacts (EC 3) as it addressed the negative impacts of the COVID-19 pandemic experienced by the County, by providing a retention incentive to specific positions working in congregate settings. The County will be working with the Treasury to properly categorize the payments to its correct Expenditure Category. The County will be in communication with the CAO’s office to ensure that expenditures reported in the Project and Expenditure Quarterly Reports (P&E) are in agreement with the intended expenditure categories as specified in the County’s Recovery Plan. The County will revise the CSP program to properly reflect its correct expenditure category in the next P&E Report, due July 31, 2024, for Quarter 1 2024. An agenda item will be submitted for approval to the County Board of Supervisors which will memorialize the CSP program by April 2024.

Corrective Action Plan

Finding 2022-003 – Coronavirus State and Local Fiscal Recovery Funds – Activities Allowed or Unallowed (Significant Deficiency) Management’s Response or Department’s Response Management agrees with the finding and recommendation. Views of Responsible Officials and Corrective Action At the time of approval, the Board Agenda Item for the Congregate Setting Payment (CSP) program did not clearly state under which expenditure category this expense would fall under. Upon further research and as identified in the County’s Recovery Plan Annual Report, the CSP program should have been classified under the expenditure category for Public Health and Negative Economic Impacts (EC 3) as it addressed the negative impacts of the COVID-19 pandemic experienced by the County, by providing a retention incentive to specific positions working in congregate settings. The County will be working with the Treasury to properly categorize the payments to its correct Expenditure Category. The County will be in communication with the CAO’s office to ensure that expenditures reported in the Project and Expenditure Quarterly Reports (P&E) are in agreement with the intended expenditure categories as specified in the County’s Recovery Plan. The County will revise the CSP program to properly reflect its correct expenditure category in the next P&E Report, due July 31, 2024, for Quarter 1 2024. An agenda item will be submitted for approval to the County Board of Supervisors which will memorialize the CSP program by April 2024. Anticipated Completion Date/Completion Date April 2024 Contact Information of Responsible Official Name: George Uc Title: Principal Administrative Analyst Phone: 559-600-1231

Categories

Questioned Costs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 387851 2023-002
    Significant Deficiency
  • 387852 2023-002
    Significant Deficiency
  • 387853 2023-002
    Significant Deficiency
  • 387854 2023-002
    Significant Deficiency
  • 387855 2023-002
    Significant Deficiency
  • 387856 2023-002
    Significant Deficiency
  • 387857 2023-002
    Significant Deficiency
  • 387859 2023-004
    Material Weakness Repeat
  • 964293 2023-002
    Significant Deficiency
  • 964294 2023-002
    Significant Deficiency
  • 964295 2023-002
    Significant Deficiency
  • 964296 2023-002
    Significant Deficiency
  • 964297 2023-002
    Significant Deficiency
  • 964298 2023-002
    Significant Deficiency
  • 964299 2023-002
    Significant Deficiency
  • 964300 2023-003
    Material Weakness
  • 964301 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $34.03M
14.239 Home Investment Partnerships Program $31.44M
93.563 Child Support Enforcement $18.84M
93.558 Temporary Assistance for Needy Families $13.85M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $9.51M
21.023 Emergency Rental Assistance Program $4.57M
93.268 Immunization Cooperative Agreements $4.33M
93.958 Block Grants for Community Mental Health Services $2.86M
93.090 Guardianship Assistance $2.60M
93.667 Social Services Block Grant $2.30M
93.659 Adoption Assistance $2.23M
93.778 Medical Assistance Program $2.00M
93.994 Maternal and Child Health Services Block Grant to the States $1.85M
93.137 Community Programs to Improve Minority Health Grant Program $1.52M
93.067 Global Aids $1.47M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $1.44M
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $1.43M
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $1.33M
93.556 Promoting Safe and Stable Families $1.27M
14.218 Community Development Block Grants/entitlement Grants $1.11M
93.926 Healthy Start Initiative $880,866
93.069 Public Health Emergency Preparedness $718,940
93.505 Affordable Care Act (aca) Maternal, Infant, and Early Childhood Home Visiting Program $641,136
93.645 Stephanie Tubbs Jones Child Welfare Services Program $588,081
20.205 Highway Planning and Construction $572,952
10.666 Schools and Roads - Grants to Counties $546,364
93.435 Innovative State and Local Public Health Strategies $507,644
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $441,593
93.674 Chafee Foster Care Independence Program $407,520
93.566 Refugee and Entrant Assistance_state Administered Programs $392,212
93.889 National Bioterrorism Hospital Preparedness Program $366,412
16.738 Edward Byrne Memorial Justice Assistance Grant Program $363,274
16.606 State Criminal Alien Assistance Program $352,329
93.150 Projects for Assistance in Transition From Homelessness (path) $317,162
93.767 Children's Health Insurance Program $308,096
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $296,579
10.433 Rural Housing Preservation Grants $287,491
93.603 Adoption Incentive Payments $276,775
93.145 Aids Education and Training Centers $275,585
14.231 Emergency Solutions Grant Program $258,677
93.197 Childhood Lead Poisoning Prevention Projects_state and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $247,365
93.959 Block Grants for Prevention and Treatment of Substance Abuse $234,352
90.401 Help America Vote Act Requirements Payments $216,999
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $216,782
97.042 Emergency Management Performance Grants $206,330
10.025 Plant and Animal Disease, Pest Control, and Animal Care $199,977
10.555 National School Lunch Program $175,695
95.001 High Intensity Drug Trafficking Areas Program $154,361
97.012 Boating Safety Financial Assistance $150,000
16.575 Crime Victim Assistance $132,514
16.543 Missing Children's Assistance $120,894
20.616 National Priority Safety Programs $120,576
16.741 Dna Backlog Reduction Program $112,687
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $100,000
16.588 Violence Against Women Formula Grants $95,677
93.439 State Physical Activity & Nutrition (span) $85,005
93.590 Community-Based Child Abuse Prevention Grants $83,732
93.658 Foster Care_title IV-E $81,525
16.922 Equitable Sharing Program $76,774
93.788 Opioid Str $50,500
20.319 High-Speed Rail Corridors and Intercity Passenger Rail Service Ð Capital Assistance Grants $36,580
93.747 Elder Abuse Prevention Interventions Program $32,338
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $27,406
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $19,348
15.433 Flood Control Act Lands $17,741
93.426 Improving the Health of Americans Through Prevention and Management of Diabetes and Heart Disease and Stroke $16,077
16.607 Bulletproof Vest Partnership Program $7,776
17.258 Wia Adult Program $7,681
93.579 Grants to States for Access and Visitation Programs $2,798